Standard&Poor's said today that Royal Bank of Scotland Group PLC's (RBSG; A+/Positive/A-1) announced plan to acquire Commonwealth Bancorp Inc. (not rated) will have no effect on the ratings or outlooks on RBSG and its subsidiaries. RBSG is making the acquisition through its subsidiary Citizens Financial Group Inc., the holding company of its existing U.S. banking operations. Commonwealth Bancorp is a retail-focused commercial bank in Pennsylvania with total assets of $1.8 billion as at the end of June 2002, significantly less than Citizens' $54.3 billion. The transaction, which is valued at $450 million, reflects Citizens' strategy to penetrate banking markets close to its native New England, and builds on the 2001 acquisition of the retail operations of Mellon Financial
